Rational Insurance profit falls

Press, Volume CXIV, Issue 33516, 23 April 1974, Page 18

Rational Insurance profit falls

The National Insurance Company of New Zealand. Ltd, confirmed last night the trend of lower underwriting profits, set by South. British Insurance two weeks ago. The underwriting profit of National Insurance fell 33.7 per cent, the diractors reported.

c production of the Accident: Compensation Act in New! t Zealand, from April 1, will > f|be reflected during the sec-1 Fond six months of the year,, -but it is expected that; growth trends will partially 1: overcome this. “The directors emphasise - that the nature of the fire q and general insurance busi-; mess is such that the results: for a selected period of ai ■ financial year are not neces-i 1 sarily a reliable guide of the filikely trends for the remain- ? der of the year,” they say. They have declared an 1 interim dividend of 7 per ■ cent (unchanged), payable on, i the capital increased by the; ) one-for-two bonus of Decern-i ■ ber. The dividend will be; ■ paid on May 10, ex dividend.; The company’s shares, which cnld month 'it o'

The result covers the six months to February 28. South British reported a fall in underwriting profit of 14.2 per cent for the same half-yearly period—to February 28. Earlier, the New Zealand Insurance Company, Ltd, had reported a rise in underwriting surplus of 24 per I cent for the half year to ’November 30.. Premiums written by National Insurance totalled $6,645,278 —an increase of 19.7 per cent over the same ; period last year—but underI writing results were affected ■ adversely by the claims arising from the floods in i Queensland and northern I New South Wales (in Janu-lary-February) and heavier: ’accident losses in New Zealand. Investment income increased 20.6 per cent and while it is expected that there will be a levelling out in the rate of increase during the second six months, projections for the full year are good, the directors say. “Upon consolidation of underwriting and investment income the net profit before tax is 8.0 per cent below that for the same period last year. “The less of premium income arising from the in-

who soia last monin ai a high of 405 c, have dropped 35c in the last three weeks, and 10c in the last two’ days.